Key Policy Letters Signed by the Education Secretary or Deputy SecretaryFebruary 27, 2008

February 27, 2008

Dear President:

Recent volatility in credit markets has raised concerns about the continued availability
of student loans. I want you to know that the United States Department of Education,
in conjunction with other federal agencies, is closely monitoring the situation
and continues to assess how broader market conditions may impact the student loan
market.

I want to reassure you that federal financial aid - grants, loans through
both the Federal Family Education Loan (FFEL) and Direct Loan Programs, and
work-study - will continue to be available to your students and their
families. There are more than 2,000 lenders that originate loans in the FFEL
Program. While a few lenders have chosen or may choose to reevaluate their continued
participation in this program, we expect other lenders will actively compete
for this loan volume and ensure that a competitive, efficient, and comprehensive
FFEL Program continues to provide a variety of lending options, foster innovation,
and improve customer service.

Thus far, we have not encountered any situation in which eligible students
have been unable to obtain federal student loans. To assist the Department with
its monitoring of the situation, I have asked my staff to contact your financial
aid administrator in the coming days and inquire about any lenders that plan
to reduce, suspend, or discontinue making student loans to students at your
institution.

It's our goal to ensure that all students and parents have continued
access to federal student aid. We appreciate your assistance in our efforts
to monitor the current student loan situation as it impacts your institution.